year. you are in serious trouble if you are in shanghai. >> our guest was saying where al's do you go in this world. who would have guessed that china would have been a better place. guess what, so do we. or at least, a lot of people suspect we do be do do we get a deal? >> yes, we get a deal. it looks bad for everybody. 2013 will not be a good year for the president or republicans. stuart: this is varney and company. keep things short. don't we, dagen. dagen: if you are the one who dropped dead, it is your heirs who are in trouble. [ laughter ] stuart, happy new year. i am dagen mcdowell.

bring in joe biden, the vice president called in to help with the negotiations. maybe we see some movement in the coming hour. a surprise in your check at the end of the week. the mess in washington leaves employers wondering how much they should with hold from your paycheck. the world, stuart was just showing you pictures of shanghai, the world already starting the celebration. the dawn of 2013. happy new year, everybody. there is a live look at shanghai, china. top of the hour. time now for stocks. >> good morning. searching for direction. not a big surprise for new year's eve. we have seen the dow down

slightly. the nasdaq is up about 15. we are watching pfizer and bristol-myers squibb they just approved a stroke preventing tail. the market for this drug could be huge. 8 million worldwide have this disorder. a huge market here for the drug. it is facing some stiff competition. we are taking a look at the markets right now. bristol-myers is up slightly at the moment. dagen: thank you, diane. we will see you shortly. we are a little over 12 hours away from 2013.

pc is then scramble mode. richmattson has this story. rich: significant progress in the last few hours. we have the leaders on capitol hill right now. mitch mcconnell is running .4 republicans. it is the vice president for democrats. they are the last few who have closed a budget deal if this administration. they continue to work at that. they continue to negotiate. if you make over, you would see

a tax increase. this is a negotiation. everything remains very fluid right now. if they do reach a deal, then it comes time to sell it to individual lawmakers. then the house would have to eventually vote on it. let's say a tax increase, preventing a tax increase, if that something you could support? >> they will increase taxes. we have voted to not raise taxes on anybody and extend the tax reductions for everybody. that was a bipartisan vote taken on --

rich: hold on one second. we have senator harry reid on the floor. dagen: there is senator harry reid. >> it is for the date only. they will. dagen: roughly ten minutes each. >> mr. president, i was disturbed to read in the washington post this morning that some kind of agreements are being made here. somehow, the democrats have

agreed to raise the level. dagen: we will monitor what is going on on the senate floor. we will see if senator harry reid has more comments to make. rich, my apologies for interrupting you and the congresswoman. i handed off to you. rich: this is where any time a congressional leader shows up, we are all over it. congresswoman, you are saying, the house has already voted to extend the tax cuts. tax rates go up for everyone or possibly maybe that five that 500,000 threshold. is that something you can still support? >> it was going to be 1%, on the top 1% for one year.

here we are 100 years later and look at the mess. that is why we need systemic tax reform. what people want to see is us putting our focus on the spending side of the ledger. the debt is out of control. a $4 billion a day deficit is out of control. there have to be some spending cuts. you have to address the spending side of this column. you have to address entitlements. what the president wants to do is look at the taxes, generate enough revenue and forget about the rest of it. i do not excel. the american people have had their fill of this. they are demanding we address the spending side. you have to look at tax reform.

it actually makes the problem worse. why would i kick the can down the road and why would i keep all of this that all my children and grandchildren so that their future is capped and traded to the people that own our debt? i think that is your responsibility. rich: eventually, the house will have to get involved in this one if there is a deal. dagen: and there are a number of issues where the two sides are far apart. keep in mind, the mmst important role is to avoid the tax increases. still some issues before we bring legislation to the floor. thank you so much for that,

rich. we are waiting for some answers to the debacle down and d.c. i look at the nonsense and think the markets have underestimated what could happen to the economy with this delay. >> they are underestimating what is almost absolutely certain to happen to the economy after this deal takes place. what they are talking about coming to a deal on is largely the bush tax cuts. what is separate from that and what is absolutely certain to take effect is temporary payroll tax cut. if they are going to go off on every worker in the first pay period or second pay. in january, also, we have the

taxes for the affordable care act. taxes are definitely going up. once we get a deal, that is when we will see some volatility returned to the financial markets. dagen: you go through those on higher income americans, higher payroll tax cut, you threshold for writing off your healthcare expenses goes off, you have medical device maker tax, you name it, when i look at this, i only think that this is the beginning of years of tax increases on, not just wealthy americans, but everybody, potentially.

>> dagen, you hit on two key point there. the folks are underestimating the impact of all of these tax increases, which equates to about one percentage point of gdp. that would be a lot for the economy to take if we had a strong economy. we do not have a strong economy. the other point is, right on the money, this is not the end of the process. the agreement, it is just the start of the beginning. it is the very beginnnng of the process. it will get tougher from here on out. how can they come to any3 meaningful agreement leading up to the debt ceiling. dagen: well said. happy new year. enjoy yourself.

>> have a happy new year. dagen: thank you. we will see you in 2013. flying the friendly skies. not so much. the airlines with the rudest workers. you can probably guess number one. we have the list. and he is never rude, jeff flock is looking at what it means for your paycheck as we go over this cleft. jeff: take a look at all of these people right here. they are on the line with employers, small businesses, all around the country right now. big story coming up will be come back. and lots of answers. ♪

dagen: it is time to reflect on all you have accomplished. congress is the most unproductive session since the late 1940s. president obama has signed 290 bills passed by congress this year. this compares to 383 bills passed last year.

his approval rating currently stands at a nice round that 18% according to politics average. from the youth list to the downright e'en, a survey from airfare revealed that flyers found -- nearly 25% of the vote. united airlines coming in second with 21% and followed by alta and u.s. airways. the social network suspending its new year's eve messaging tool. it allowed them to read the messages of private users.

diane, a big raise. >> that is right. we are watching netflix shares very closely. this comes out after they cut his take last year. the stock is up almost 32% since the start of 2012. reed hastings is doubling his outlook. trading is light as expected. the dow is up 11. the nasdaq is up about 22. the s&p is up about five points. dagen: thousands of small businesses around the country are waiting for the outcome around washington. the results could have a serious impact when it comes to withholding taxes from employees

paychecks. jeff flock has more. jeff: take a look at this customer care service center. the calls are beginning to come in. there is, at this point, no deal. at this point, no guidance. >> we are following the irs guidelines. from the social security perspective, we are increasing the taxes by 2%. jeff: there was a social security tax holiday for employees. they were paying at 6.2%. >> for two years they have been paying at 4.2 and now it will go back up to 6.2. jeff: is there anyway, based on what you know, is there any way your employees can react quickly enough to get that in place by this friday's paycheck? >> it all depends on the nature of the deal. it is possible.

it depends on how complicated the deal is. it can be quite a bit. you have a 2% increase that will affect everybody. on the lower brackets, they are scheduled to go to 15%. jeff: at this point, though, dagen, they will stick with the 2012 until they hear something else from the irs. that all depends on what happens in washington. dagen: that payroll tax will probably go away. thank you again. jeff flock reporting from illinois. happy new year. it may look empty now, but take a look at times square. it will be packed.

will the new year bring rising gas prices? we will talk to the man who knows it all. tom close -- tom kloza. ♪

dagen: hundreds of thousands of revelers are expected to crowd into times square tonight. that is where we find lauren simonetti. >> the calm before the storm, indeed. it is cold out here. it feels a lot colder when you are standing here and not moving.

believe it or not that it has been colder and times square. 1917, minus 7 degrees. so glad i was not alive back then. how are you prepared for this weather here? >> i did the best i could considering i am from florida. i have lots of layers. >> it hardly looks warm enough. where is your scarf? >> i am from florida, we don't have scars. >> we were talking about and you were prepared for this, it will be very difficult comp 3:00 p.m. in times square barricades to possibly use the restroom. how did you come prepared for that? i am not joking. >> i brought a jar.

dagen: do not buy a street scarf, they smell like exhausts and hotdogs. go into a store. >> our anchor says try not to buy the street scarf's thought they smell like exhausts and hotdogs. i think he may be desperate. i can do my head from right inside the truck and he would not even know. we have heated seats and everything else. it is a little tip of the trade to keep me going throughout the morning. dagen: lauren, thank you for that. god help us all. lauren, happy new year. potentially a million people in times square. fox meteorologist has the forecast from our weather center.

maria, good to see you. >> good to see you too, dagen. lauren is doing an amazing job. i do not know how she is still doing it. yes, it will be very cold. everyone really needs to bundle up. it is 30 degrees in new york city. we could be looking at windchill temperatures at 20 degrees. we are talking about snow today across portions of kansas, missouri and even into illinois and eventually received portions of ohio. the snow can still be coming down even during the midnight hour tonight. you will need umbrellas. you are talking rain across western portions of kentucky and that would be freezing rain into some spots. that is very dangerous. otherwise across parts of oklahoma and southern oklahoma, it is just plain old rain across

many of those areas. for tonight, at midnight, there were fireworks will be going off. grab a clear umbrella so you can actually see. your current temperature is 11 in minneapolis. 32 degrees right now in new york city. of course, in the northeast, you factor in that wind and it feels colder. 12 degrees is what it feels like right now in burlington, vermont. dagen: because it is new year's eve, that dress looks great. >> why because it is new year's eve? dagen: you are right. i would say it every day. maria, thank you very much for that. if you are looking to continue the new year's party after new year's eve, one london newspaper

is clogging away. it is compiling a list of the world's busiest destinations. cancun, no surprise, made the top of the list. the capitol hill shutdown now in its final hours. we have the latest from d.c. those lower gas prices you have seen lately at the pump, they could be around for a while. tom kloza is coming up. here are some winners on the s&p. the biggest winner of the year pulled the. ♪

dagen: the final hours before the deadline. struggling to find some answers to the debt crisis. these lower prices we have seen recently that the around at the gas station. the top selling ccr for 2012 was the ford focus. we have some of the new hot models for 2013. bottom of the hour, stocks now and every 15 minutes.

>> we have the nasdaq up by 17. it is a light trading day, as you expect, on new year's eve. this is a mover this morning. you can take a look at how this is affecting the stock site now. it is up about 20% on the day. dagen: thank you so much. we are heading into the final hours before the fiscal cliff arrives. let's send it down to peter barnes. where is mitch mcconnell and harry reid, what is he up to?

>> mitch mcconnell is chatting with vice president biden. he has been tasked over here to try to find some sort offdeal, some sort of agreement to avoid the fiscal cliff. they have a lot of history together. twenty-three years in the senate together. they have a good working relationship. people call biden the mcconnell whisper around here. they are able to at least talk and get things done. they have been key players in the last negotiation. i have to tell you, dagen, the white house and the vice president office are not telling anything about the talks. harry reid seems to be on the sidelines right now. dagen: the idea of mitch

mcconnell in the vice president whispering to one another in each other's ears, just, well, leaves me with no words. [ laughter ] i think i should end it there before i embarrass myself. >> that is okay. the horse whisperer, the mcconnell whisper -- dagen: the dog whisperer on yes, i understand. thank you very much. peter barnes, happy new year. twelve hours to go and no deal inside. david, your reaction to no action. >> it definitely looks really bad right now. as if we may go over the cliff. i, you know, other people on this network know more than i do on this. the markets do not seem to be freaking out right now. it seems like they are perfectly

happy to watch us go into the new year. everybody in america will see their paychecks shrink. they will see withholding go up. the payroll tax holiday will end. there probably will not be time enough to make sure that the withholding is according to the new rules as opposed to the old rules. nobody even knows what the rules are right now. there will be a bot of angry people in january trying to pay back the bills for the christmas gift that they got. dagen: what does this say, though, about the inability of the white house and congress to really do anything in terms of tax reform during the new year. given the divisions we have seen just in the election.

>> even he has talked about some sort of tax reform. he is not the first president to be really bad with this. george bush had a republican congress and he was quite terrible. it was basically his way or the highway. with obama, he has had an attitude of i would just stand back and let the democratic congress do their will. we have this republican congress now, since the 2010 election, he has not done much to reach out or work with them. dagen: is that kind of attitude, how will that get in the way of getting anything done, particularly today? >> well, yeah, obviously, if

people are trying to vote on a deal that includes a tax increase, they should just keep the rates down for people in the rest of the brackets and let obama have his, you know, you do not have to vote for a tax increase. it happens with or without you. you do not have to vote for a tax increase in that way. obama has something to worry about here, by the way. the republicans could even lose the next election because of this.

he will have to live with this in the history books. dagen: reelection or legacy? great to speak with you, david. happy new year. tom kloza is coming up next. we had record gas prices this year. the average price we paid this year was a new record. will it be even higher in 2013? the top-selling car in 2012 was the ford focus. kind of little. if you are celebrating, finding that cab ride home after the party is going to cost you some coin. we are talking about limo service. i have used it. it is kind of nice. take a look at the treasury markets. the bond market closes today, early at 2:00 p.m. eastern time. that is what the federal government can do, it can borrow

money at that. ♪ [ male announcer ] this is joe woods' first day of work. and his new boss told him twongs -- cook what you love, and save your money. joe doesn't know it yet, but he'll wk his way up from busser to waiter to chef before opening a restaurant specializing in fh and me from the great northwest. he'll start investing early, he'll find some good peop to help guide him, nd he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. man: we are rolling. all right, mama's gonna bring it home, ama's gonna bring it home. oh, no!

man: oh, mom! aah! nnouncer: challenge your kids to be active and eat healthy. all right, let's see what you can do. let's go. announcer: searc"we can" for ideas on how to get healthy together. >> i am elizabeth macdonald with your fox business brief. lawmakers making little progress on our debt crisis. senate majority leader harry reid taking the floor at the top of that hour to say there are still some issues to iron out. there will be no bearing fiscal cliff. without the compromise, though prices could jump to eight dollars a gallon. secretary hillary clinton remains in the hospital. she is being treated from a blood clot. she is expected to stay at the

hospital for two days while being treated with a blood thinner. that is the latest from the fox business network. giving you the power to prosper. ♪

dagen: how much would you pay to get a ride home on new year's eve after partying? it looks like getting home tonight will prove uber expensive tonight for many. shibani joshi has the details. shibani: if you are planning a big night on the town, bring a big wad of cash or walking shoes. there will be plenty of cars available if you so choose to use the service. they will not be cheap.

sending out an e-mail to customers warning that "new year's eve pricing is not for the faint of heart. "the average surcharge will be two times the normal prices. if you do not want to be handing out benjamin and all night long, you may want to be thinking about other ways to get around. the peak times will be 12:15 a.m. to 2:45 a.m. dagen: third drivers are great.

the cars are fabulous. people should stay at home. shibani, happy new year. shibani: or take the subway. dagen: yeah right. happy new year, shibani. 2012 may be a year that drivers want to forget. tom kloza is the chief oil analyst. he is joining us now on the phone. >> it seems awful call for a great period of 2012. the price of crude was high. it is about a billion higher than last year which was the

previous record. people really stop driving a lot in november and december. it is interesting how we as a nation figure out how to cope with it because demand is pulled back. where will prices be? >> i think we will see lower lows, but not higher highs. the oil markets and the gas of the -- they tend to sober up. the sobering reality is the u.s. has cheap crude, much cheaper than the rest of the world. people are driving less. kids use social media.

we have lowered demand and cheaper crude. it will be a little bit better, i think. dagen: you are not that old. >> i do remember when, you know, we used to go to truck stops. dagen: just really quickly, this is a huge advantage that the united states has in terms of the plentiful amount of crude. >> absolutely. the price of crude today, you are looking and seeing $95. the canadian crude is probably $50 a barrel. there is stuff coming from north dakota that is in the 80s. even west texas, if you go there, it is costing about 14 or

$15 under the futures price. it is a good story. we are the beneficiaries for that. dagen: happy new year. great to talk to you. thank you, tom kloza. >> have a great one. dagen: you as well. stocks now and every 15 minutes. >> we are watching facebook this morning. we have a couple of firms raising that companies price target. that has chairs up almost 2%. we are also looking at the winners of the day. we had caterpillar, ge, home depot and take of america all up 1%. hewlett-packard year to date is

down about 46%. bank of america is up 104%. dagen: thank you, diane. though ford focus was the top-selling car of 2012. we take a look at hotter models that are coming in the new year. speaking of another type of learner, those on the nasdaq today. ♪

dagen: ford has the world in focus, literally. it was at the top selling car globally in 2012. 750,000 in units. expected to top 2 million vehicles sold in the gear --

year. the company will remain second. shares of ford down about half of a percent today. from the top of 2012 to 2013, joining me now is editor of fox car report.com. talk to me about chevy. >> a lot of new cars. the corvette is the top anticipated car of the next year. dagen: what are they doing to it? >> they will reveal it at the north america international show in detroit in two weeks. we are getting an idea of what it looks like. very much in the tradition of the corvette. it is a lot edgier. definitely a lot more updated and modern. it will be very lightweight.

most importantly, more refined than the current car. it is not the best environment to be sitting in all the time. it will have an upgraded interior. dagen: will they be able to charge more for it? >> hopefully, they will not. this is a bargain car. this is as good as many cars out there. dagen: i will get to see this thing in a few weeks time. i asked our producer if i would get to drive it. he said no. >> it will be a few months before they actually have one out on the road. this is gm's halo car. they only sell ten-15,000 of this. dagen: it is spectacular while porsche has been able to do in terms of expanding its brand over the past couple years.

there is a car for anybody in your family if you have the coin. it had a record year in sales. >> it was not that long ago where they were basically making one car. [ laughter ] dagen: the old bathtub porsche. >> now, they have everything. next year will be the plug-in hybrid car. $845,000. it has a racing the eighth engine in it. three electric motors. it will be able to go over 200 miles per hour. when you are running it in electric mode you can get a lot of miles per gallon. dagen: you can have the performance and you can have the fuel economy. last thing, --

>> this is aiming to be the best car ever made. they made the fastest car ever made. they will not try to make the fastest car here at top speed, this will be the best car in the world to drive. probably $1.5 billion. listen to this, the rent which dealership, they are taken $120,000 deposit on this. if you do not like with actual production production version looks like, they will give you your money back plus 2%. you can't lose. no more than 500. dagen: good luck. gary, thank you so much. happy new year. oil and gold in the green as the

fiscal cliff talks continue. sandra smith has more on today's. sandra: let's start out by looking at a gold chart. we are up about seven dollars. however, i want to remind all the viewers out there that this would still be on pace for a 2 straight annual gain. it has gone up 12 years in a row. oil up $0.36 at 9116 a barrel. still well above $90. the oil market would signify that traders here, at least on the floor, police that there may be a deal by the end of the day. >> i kind of disagree with that. this. the crude oil market has to be taken on its own. i will not say that the fiscal cliff will dictate which

direction prices will go. look at demand numbers for what we are using globally. they have been very positive. sandra: we will have to leave it there. give me your best guess at what happens at the end of the day. >> push as much of it as they can down the road. it is a shame that we do not have a functioning bond market. sandra: we will be talking to traders down here on the floor all day. we are approaching the final hours of the trading. dagen: thank you so much, sandra. some heads rolling in the nfl. firing of head coaches. also, the head coach of the buffalo bills. too bad rex ryan is not on the list. we will take a quick break. all over developments in d.c.

if only we could fire some of those folks as well. stay with us. more "dark it's now" after this. ♪

♪ >> silicon everybody becoming up , bring in the vice-president, called in to help the debt negotiations. suddenly going nowhere at this hour. a surprise check at the end of the week. the mass in washington leaves employers guessing at how much money they should hold from your pay. will they go with the worst case scenario? and the world already starting to sell about -- celebrate the dawn of a new year. 2013 already happening in other parts of the world. we're 12 hours and 15 seconds away. it is the top of the hour. of course the mess we do every day, stocks every 15 minutes. the floor of the new york stock exchange.

>> reporter: taking a look at the markets. seeing a mixed market. fairly light trading without futures down by seven, and nasdaq up 19 and s&p holding on to greek territory by about three. also watching apple. that stock up almost 3 percent this morning. the potential in 2013. looking at possibility of an apple television, expected new ipad many, even rumors of an i watch among other things. that seems to be the focus, but it is worth pointing out that the stock is down 10% for december, down 22% for the last three months which includes the holiday shopping season where it's supposed to be up. has not been a great few months, but they are ending the year on a high no. cheryl: thank you. we'll see you in 15 minutes. senate majority leader harry reid is saying that democrats and republicans are still far apart on a number of issues in fiscal cliff tops. this as vice-president joe biden

steps up to the negotiation table. joining us now from washington with the latest, peter barnes standing outside the white house. first, rich edson on capitol hill. the senate's orotund aware about an hour ago the senate finally got under way. >> reporter: good afternoon. right now they are discussing a current framework on how to address the sequester cuts, automatic government spending cuts that hit the federal budget starting this week. 94 billion for the year. they're discussing the current framework that would include protecting income amounts of less than $400,000 for individuals, 450,000 for couples , married families from a tax increase. this framework also includes keeping best -- estate tax levels where they are, extending the alternative minimum tax package that is preventing tens of millions of middle-class americans from having to pay the amt. a doctor checks, making sure that medicare doctors don't get a significant pay cut starting tomorrow and long-term unemployment insurance benefit.

all these details and john how exactly they deal with the sequester, but it appears as though this remark is in place. they're dealing with the sequestered. senate majority leader taking to the floor and our go in and u.s. senate says there is still talk. >> discussions continue today on a plan to protect no class families from a tax increase tomorrow. a number of issues in which the two sides are still a part, negotiations are continuing as i speak. >> reporter: describing significant progress in these discussions. if they do reach a deal, the senate minority leader, mitch mcconnell and the vice-president, joe biden. if they do strike a deal the senate impossibly vote on that later today in the house has fast track certain procedural authority, and they can consider this as early as today, but there are still talking the details out between folks of the white house and republicans in the senate. cheryl: one of the key questions from a market perspective has

been every going to get as many bargain or a grand bargain? many market participants believe a grand bargain is going to come after the first of your. whether that is involved in the debt ceiling debate or otherwise the gop is pushing the can down the road and it will fight another day in a cave today. >> reporter: over the last to bleach it became clear that a grand bargain, one that includes tax and and tell my reform, seems to be going away. we're getting so close now. that framework is about as much as we're going to get now. the spending cuts will likely be fought out during the debt ceiling debate. that would have to be a process that would be accomplished over the next few months, perhaps over the summer later into next year. cheryl: patching the medicare fix compile list of issues they have to deal with. thank you very much. let's go over to up peter barnes standing by at the white house. have we seen the president?

>> reporter: note, but i can tell you, he is still in the west wing because there is a marine standing at the front door of the west wing. whenever the president is working, the marine is there. the point person for these initiation is vice-president biden, talking with some a majority -- senate republican leader mitch mcconnell who said yesterday he was looking for a willing dance partner to try and work something out with. senator mcconnell and the vice-president biden go back a long time. as you know, spent 23 years now sent to go before the vice-president ran for his office back in 2008. they worked together for and some of these big deals, including the debt ceiling deal and last year, the summer of last year. we are not getting any comment out of the white house or the vice president's office on the status of the talks. i want to bring up an important issue for employers who are worried about what they may have to withhold starting wednesday when we all go back to work.

in the irs has put out a statement saying, we are aware that employers have questions with respect to the 2013 withholding since congress is still considering changes in the tax law. we continue to closely monitor the situation. we intend to issue guidance by the end of the year on appropriate withholding for 2013. december 301st. the end of the year. we are told by officials that, in fact, there will be guidance from the treasury. what i'm sensing is there kind of waiting to see what comes out of these negotiations later today before they issued this guidance to employers. cheryl: secretary tim geithner has been involved off and on in the fiscal cliff discussions and talks. you keep hearing the word retroactive. because shockingly enough, if congress can't figure something out today, who would think that

what happened. that would mean that this will get pushed down to later in the weekend it would come back. congress kicks in, things become retroactive. this is d.c. don't they have the power computer, to go home and come back and figure this out? >> they do. there are two approaches going forward from today. one is maybe have a framework today and pass it next week. then teams the tax code retroactively. the the thing they can do as the treasury secretary, tell the irs to continue to withhold for most people at 2012 withholding raids, the 2012 tables. that is with the apparel industry has advised its companies to do, continue to hold the 2012 withholding rates. again, we're going to get some clarity on this sometime later today. as soon as we do will get on the air. cheryl: we certainly needed.

many americans are wondering what to do with this last day of trading. thank you very much, live at the white house. we will come back to you. we certainly hope so. let's bring in former maryland governor and u.s. congressman, now senior counsel for government advocacy and public policy at king and spalding. of what your initial reaction to everything that we have not seen in fact, the lack of. what do you make of this last-minute wrangling with less than 12 hours to go? >> reporter: this reminds me of all the omnibus budget negotiations from the past. never changes. i was keeping a list. the anc. it is the same issues over and over again every time we reach this sort of problem with regret to fiscal policy in congress. the big issues obviously -- by the way, sequester is the artificial into the bill into this. the big issue, and salomon

reform, long-term tax rates to what to do about spending, $16 trillion in debt. again, being postponed. the bottom line is a mini deal along the lines of kicking the can down the proverbial alley, no doubt about it. waiting until a new congress is sworn in in order to hopefully finally really bottom-line did to the major policy issues regarding the country including the uncontrolled spending in washington d.c. cheryl: many republicans are saying that you just wait until the debt ceiling debate begins. that is when they're will really get serious. when you were a u.s. congressman one of the things he passed was your tax reform. taxes were the big issue you when you had your time in congress. the lack of understanding at this point by our men and women in congress as to the tax code

and what it actually got more complicated instead of being simplified. >> you have a more moderate president philosophical sense. big government, dependencies and he just got reluctant. that's a big difference. the second difference, when i was in congress there was a legitimate third party, the blue bell democrats. we used to be the boll weevil democrats, moderate more fiscally conservative democrats, are real honest broker third party. it played a real role in budget negotiations. we had balanced budgets for three or four straight years, negotiating with the more modern president but also having enough democrats in the house who were really fiscally prudent, who wanted to get to a balanced budget who understood the importance of it. today if you look at the research and left, particularly in the house, the moderates are pretty well gone. you have a very liberal in the

house. very liberal in the senate. more interested in expanding the role of government. not getting to something that makes more sense long term. you have this huge philosophical divide. we're going to postpone it, do this mini deal now, but quite frankly it's going to be ugly in the future. cheryl: listen to the president yesterday meet the press. that divide is larger than ever. that was very apparent yesterday. thank you. appreciate the perspective today >> my pleasure. cheryl: happy new year. a : new year's day. much colder in most parts of the country. we will show you what to expect and the big business behind this holiday. back on the big man show. first we go to break.

oil a little bit stronger, but not much. same kind of trading next.

cheryl: we are less than 12 hours away from the new year on the east coast. look at these live pictures of times where right now. a beautiful day outside, very cold, windy day at side. who else is joining me right now from the box is weather center with what we can expect from tonight's big weather forecast. happy new year, janice. >> will you be up for the ball drop? cheryl: are you kidding me? god, no. of the sleeping. >> i'll be asleep. this is the most just above will be today. sweatpants around 8:00 p.m. cheryl: and it will be freezing cold in times square, and i have no interest in being in that disaster. >> and glenn were being so honest. it's the new year. it's just a year out there, but what are you doing out there anyway? where did they go to the bathroom? we ask that before. i don't think i ever got an answer. there's a look at times square. you have to be there in the next couple of hours, and the doe will you out.

cheryl: i don't know, diapers? >> us take a look your satellite radar imagery. this is not going to be a major storm. it will drop a few inches of snow across the plains states and the ohio river valley. we could get two to 3 inches wide spread from the rockies to the ohio river valley. isolated amounts to, but that will make for a very pretty new year's day. it is cold across the country. the current temperatures, 11 in minneapolis, 16 in rapid city, 18 in denver, 23 in as a look from a 34 in kansas city, reporting some snow. you get the picture. for the most part is chilly. feels like january. it's going to be cold. here in new york city, 33. not too bad. it could be a lot worse. not going to be in the snow. it's just going to be chilly. cheryl: i'll be heading home. thank you very much and happy new year. you look great.

>> select my sparkles? cheryl: harris berkeley in pretty tonight. thank you. fifteen past the hour. stocks every 15 minutes. team coverage. sandra smith standing by in the trading pits of the cme watching commodities. first, diane on the floor of the new york stock exchange. >> reporter: trading fairly light and flat this morning. the dow up now almost two points, a little more than one. the nasdaq up 19 with the s&p up just about four points. markets mixed for most of the morning. if you look at the dow specifically, you get the same thing. looking at the losers for the day, caterpillar, gee, home depot, philip -- hewlett-packard and bank of america. coincidentally, a loser and winner for the year respectively. also looking at the losers for the day, and thus come in with mcdonald's among boeing, coca-cola, verizon, and disney. boeing struck a deal to acquire

nearly 1100 acres near its facility in south carolina which gives it the potential to be able to quadruple its footprint there. no plans to expand just yet but wants to keep its options open. in the meantime, the ticket over to sandra at the cme. >> reporter: hello. i want to take a look at some of the commodities winners and losers. it says a lot, what's happening in the markets about what traders are speculating will happen by the end of the date. commodity winners include copper, crude oil, gold, silver, are bought gasoline, all economically sensitive commodities that have been taking a hit based on the falling off a cliff. they are up today indicating there is major speculation in the marketplace that we will get a deal by the end of the date. your biggest losers include a lot of the agriculture or commodities to mall because of that farm subsidy they have made a deal on that to extended for another year. we are seeing them down today. i want to get to a trader at t.j. and institutional, looking at some of those commodities

that are indicating the you think that we're going to get a decision. >> that said that on observation i did not pay too much attention, but you're right. the farm subsidy being extended, but this is definitely telegraphing something going on. the other positive, most of the news coming up today from the floor of the senate has been reasonably positive, not negative. >> reporter: s&p 500 of 12% for the year, getting another gain today. is that another sign that there is optimism out there in the marketplace? >> to fold. optimism that there is a deal in the working. more importantly, there's optimism that the economy may be turning a corner. cheryl: there you go. we are watching all these commodities and will be talking to traders throughout the day. everybody is on pins and needles as we get minute by minute updates from washington. in the can turn the markets.

will employers decide to take more money out of your paycheck at the end of the weak? jeff flock as answers. and we have good news in housing good news for related commodities. lumber. toby talking about that. first, take a look at how the world currency is bearing is the u.s. dollar. the euro holding steady against the dollar.

cheryl: my next guest does not see a fiscal cliff deal until late january, but the possible market turmoil to follow could create a stock buying opportunity. joining me now, global financial services president and portfolio manager. of course you'll see the glass half full on this one. yet been saying this since november, to be fair. >> taking the position that we don't think the politicians are really going to get anything done until the backs of firmly against the wall which will be after the first pay cycle of the new year. that's why we are expecting third week of january, but this is also an opportunity.

we have to recognize that. if you look at the market today, just imagine. if you pull 20 investment professionals yesterday we probably would have said markets are going to be down today. better than expected economic news. cheryl: is trying to, but they're is a lot -- one of the best performing sectors of 2012 was financials. it would have predicted that at the beginning of 2012? is in that kind of hard for people to focus on what sectors for people to look at when you have this crowd of cliff uncertainty? >> there is, but if you take a step back and see better economic news in the you want to focus on companies that have strong balance sheets, companies that have better than average growth rates and predictable growth rates, and you want to focus on companies, whenever possible, that pay a strong dividend because that is a major component. cheryl: you know that's a controversial position. get the most divisors.

most seniors love those talks, but this could be. it's possible. >> they could certainly sell-off on account of tax worries, but you have to understand that as long as the fed and central banks around the world will keep interest rates below zero dividends paying stocks will be very attractive for anybody looking for cash flow, especially compared to bonds. there are few out there thinking that the bond run will continue much longer than it has. if you talk to us, we turn bearish on bonds a year ago. cheryl: one of the groups the always talked about, the consumer sector. at the same time, companies took a big hit for december. the issues, the storm and the shooting in some horrible things that happened, the cliff. >> the debt ceiling debate coming up. there is certainly pressure, and you don't want to ignore it, but ask yourself this, again, taking a step back, would you rather on a speculative stock that will be

or would you prefer owning something to you feel very comfortable behind the next three to five years which is what investing is about. cheryl: you're asking me if i wish i would have bought both the at the beginning of the year. yes, i do. quickly, some stocks that you do like. the food and beverage category. pepsi without the change, a lot of analysts have been negative. as on the gate 2%. >> which is one of the things we like because it came less than it has grown in terms of revenues, earnings, and continues to have a strong balance sheet and a good dividend. that is very attractive because you want to look for that type of dislodging. when the company is growing faster in terms of revenues and earnings, that tends to be favorable for stock buyers. when the stock price is appreciating much faster than earnings, that tends to get a little overpriced. cheryl: down 2%. you would think it would hang on . happy new year.

>> happy new year. cheryl: another great year to have you won as a guest. one of the best performing commodities of 2012, lumber surging to an 8-year high on the heels of the u.s. housing recovery. lumber prices rallying on a supply crunch in recent years. in 2008 bills were closed due to the lack of demand and price declined. china has stepped up purchases of american number of the past couple of months. again, pulled the homes, should know what of cuts. anyway, capitol hill showdown now in its final hours. we'll have the latest from washington. and the traditional drink of the new year. there is some money to be made here. as you can see, core bell. its annual visit. as we go to break, take a look at some of the day's winners over on the s&p. tdd#: 1-800-345-2550 this morning, i'm going to trade in hong ko.

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cheryl: now in the final hours before the deadline, the gang on capitol hill still struggles to find some answers to the debt crisis. and not so happy surprise in your paycheck. with no help from washington, employers may decide to sit on the worst-case scenario for taxes and withhold more from your pay. and more countries around the world bringing in the new year. lots of great video coming in. of course we will play for you, because that is what we do. we are always checking on the markets, and of course right now we're coming upon 30 past the hour. stocks every 30 minutes.

i'm actually kind of glad. we are not seeing the volatility which is refreshing after the year that we have had. >> reporter: that's right. we are watching a lot of different things. as expected, fairly light trading day, but there are a few movers. we get earnings and from that company. it's down 39% for earnings from last year which is largely due to higher cost which is due to the drought. the company says they expect higher feed costs to continue. the largest producer and distributor. companies like farm house, for grain. on the plus side, they have raised prices and keep sales up despite that. shares down about 10%. looking at the markets, green arrows across the board. the dow up six points, nasdaq 22, the s&p up five. cheryl: considering we had nothing done over the weekend, those aren't bad numbers. fifteen minutes from now.

thank you. well, as the last day of 2012 comes to a close, it is time to reflect on all that you have accomplished. for congress, maybe not so much. they haven't done anything. set to go down as the most unproductive session since the late 1940's. president obama signed 219 bills passed by congress this year compared to 3803 bills passed last year. 460 the year before that. approval rating currently stands at 18 percent according to the clear politics average. no surprise there. the 100 of congress continued to spar with president obama and each other over the fiscal cliff. joining us from inside the beltway, peter barnes, rich edson standing by on capitol hill. all right. what are we waiting and? >> reporter: significant progress is what aides are telling us. they're working with the current framework right now. what it would do is protect

income amounts of less than 400,000 for individuals, four under and 54 families, from a tax increase it includes extending current levels of the estate tax, preventing tens of millions of americans from having to pay the alternative minimum tax this year, ensuring that doctors who treat medicare patients don't get an automatic pay cut. long-term unemployment insurance. while lawmakers are discussing right now with the white house is how to deal with the sequester, those automatic spending cuts of 94 billion that are supposed to start next year. negotiations continue with senate minority leader mitch mcconnell leading the way for republicans, and a vice president discussing for democrats. we are starting to get some lawmakers talking about some of the numbers of we have been discussing, and there is some push back now from democrats. >> if we're going to have some kind of a deal, it must be one that really does favor the middle class, the real middle-class among those that are making 30, 50, 60, 70,000

per year. and as i see this thing developing, quite frankly damascus said before, no deal is better than a bad deal, and this looks like a very bad deal. >> reporter: on the other side, republicans calling for deeper spending cuts. cheryl: all right. we are going to be closely monitoring everything from capitol hill, also watching the white house. peter barnes, you are standing by. any news at this point? >> reporter: there are as quiet as clans over year. which may be a good sign for folks who won the deal. no word from the white house or the vice president's office on how these talks are going. but i did want to talk about this question of what will happen to withholdings come wednesday when the new year starts. if we don't have a deal them

what to our employers, what does our company do for our with holdings? and we are told that there is an administration official, there will be some guidance issued on this later today. the irs said that it would by the end of the year issue some kind of guidance. that is now being confirmed by an administration official. the question is whether or not there will allow companies to continue to withhold for most people at the 2012 payroll withholding levels, the 2012 withholding tables. that would probably be the easiest, but as we mentioned in our last discussion, they could also go ahead and finish up legislation, get a framework, finish legislation in the new york and make it all retroactive we are expecting some guidance from the irs and treasury later today on what employers are supposed to do billing for work. cheryl: thank you very much. it will be checking back

throughout the afternoon. we are debating the wrong issues. we should not be focused on debt and deficits but rather our fragile economic and job problems in this country. the economic policy institute. you say it that we are completely off base. >> we are dealing with self-inflicted wounds and not even really having a proper conversation. with our economy so far underperforming relative to its potential and so many resources, mostly in the form of unemployed workers, we are so far short of where we should be that it really obscures the whole picture of our long term fiscal outlook. we'll talk about deficit reduction at a time where really we should be talking about how to get our economy moving back to that maximum potential. that is really the first priority. not to say deficits and debt are unimportant, but it is a secondary priority. cheryl: the jobs report on friday.

it's like we have nothing else happening. one of the big issues is the unemployed. the extensions will go away for about 2 million americans. what does that mean for the economy instantly? >> the aggregate, billions of dollars from the economy and a point where we are still very fragile which will cause pain throughout the economy. not addressing those issues means yourself afflicting most adjust completely unnecessary. unemployment insurance, when we have such high rates of unemployment, have never before been controversial issues. we have always done that on a bipartisan basis, but now it is really a part of this larger discussion, and it does not really make any sense. cheryl: i cleverly brought you back to the fiscal cliff debate because i want to ask you about this. if you look at the expiration of

the bush tax cuts, something else that would go way in 11 and a half hours, that's one-and-a-half percent of gdp. that is a big chunk of this nation's economy that goes away in spending power. i know you and i disagree, but we agree here. some of these tax cuts need to stay in place. >> without question, without question. there is certainly a healthy debate to be had about at what level you maintain the tax cuts. so close to seeing all those tax cuts go away. a completely ridiculous congress inflicted wound on the economy that is very difficult to square with reality. certainly i understand that retroactively they can do a lot to restore a lot of the damaged, but we are so close to the purposes -- press the does, it makes no sense. cheryl: last and final question. i know this is tough to answer, but we have had some really good things happen.

the recovery, calling it a recovery, the fed that has been more than generous and throwing money into the system. kendis economy recover? -p>> it can, if congress acts relatively quickly. but if we, you know, go past tonight, what are the prospects that we are going to see a deal in two weeks? we have had the better part of the year talking about this. if we could not get it done by now more of the prospects of doing something positive in the next couple of weeks? if we go past today i'm not sure that the odds are very good. so i'm still ootimistic, but i am starting to get a little concerned. cheryl: all right. of course it's always great to have you on the show and good to have you. happy new year. >> same to you. cheryl: a surprise in your check at the end of the week. the mess in washington leaving

employers guessing and how much money they should hold from your pay. and celebrating. bringing in the new year with champagne. first, don't touch those bottles. i mean it. get away. first, as we go to break, here is the 10-year treasury. we'll be right back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪

all on thinkorswim. from td ameritrad ♪ >> reporter: i'm adam shapiro with your fox business brief. lawmakers are making little progress on the debt crisis. the countdown to cuts in spending nearing its final hours. talks between vice president joe biden and senate minority leader are said to be making progress, but there are no official development in the push for new

tax legislation. there will be no fiscal clifford bury. congress does have a compromise on the farm bill. without it it was worried that no prices to jump as high as $8 per gallon. secretary of state hillary clinton remaining in new york presbyterian hospital. being treated for a blood clot. she expects to stay at the hospital another two days to be treated with blood thinner. companies officially leaving bankruptcy, a new board will be named as the company in its 4-year journey from chapter 11. that's the latest from the fox business network, giving you the power prosper.

cheryl: we are getting some crucial breaking news on the fiscal cliff discussion. this learning from the white house the president is going to address the country. 130 eastern time. that is about 45 minutes from now. obviously the president is calling to make some type of statement. it is going to be about the fiscal cliff, and he will be surrounded with middle-class

americans. we are also getting reports right now, there are some details that are emerging about what a deal could possibly be looking or looking like at this hour. at this point, that deal could race tactics of raise tax rates for individuals that have an in camera above 400,000 year. households of 450 quoting a source familiar with those talks again, just crossing the wires, these two pieces of key information. we may have the framework for a deal. we will take the president's comments live. 130 eastern, 45 minutes from now. as we get ready to pop the cork on new year's, champagne already celebrating, finishing out 2012 as the number one champagne sparkling wine brand in the entire nation. joining me now as he does every year at this time by phone, chairman and ceo, happy new year. >> at the new year to you.

cheryl: you have had a good year. what do you attribute that to? >> besides being an affordable price champagne, it's seems that people are tired of the doom and gloom. they want to make everybody a little bit happier. cheryl: the number three brand also, and i think this is crucial, and grocery stores. that distribution platform for the sparkling wine. i have to be careful in not say champagne too many times. you really have had success with the safeway, costco, do you see that increasing? >> yes, i do. i certainly do because i think you will see more people doing one stop shop that stuff. grocery stores do that very well cheryl: also, you had 2012. you had the largest amount of sales by volume. the biggest amount of cases shipped except for the millennium. do you think that sparkling wine is kind of coming into its own and becoming a little more

mainstream? >> yes, do. one of the big reasons for that is everybody's starting to makes champagnes, mixing cocktails with champagne, making a little bit more fun instead of just straightforward pop the cork and, you know, don't makes champagne with anything. you can mix it with a lot of different flavors. cheryl: a lot of cocktail mixes. the demographics of the nation right now. -- you have a younger demographic or is it more of the older set? i know that new york and california still remain your top market. >> it's very mixed. up smaller, younger, millennial, the x generation. we just about tap everybody because we have 11 different flavors, a sweet one now that we have had out for couple of years doing very well. that taps in. cheryl: of want to ask you, are you concerned about the emergence of sparkling wine in this country?

coming from italy and spain. are you concerned at all that it will dig into your maagins? >> i am not. has been around for a long time. % go, you know, it is a lower effervescent sparkling, and it's from italy. i just don't think it's tapping into our market all. i say that because we are up to tremendous this year. cheryl: well said. breaking news coming out of washington. great to have you on the show. happy new year. i want to bring in diane, as we do every 15 minutes. we are getting some news coming out of washington. the dow jones jumping right now. up 70 points right now. >> reporter: that's right. session highs. the dow up 73, nasdaq about 35, the s&p up almost 12 points after seeing it fairly flat, searching for direction all morning. keep in mind, five straight

losing sessions for the dow, trying to stave off that losing streak here on hopes of of this bill cliff still coming through, also taking a look at pfizer and bristol-myers today, the fda approving a cholesterol fighting drug from both companies. those are both up. bristol-myers up one and a half%. pfizer up just slightly as well. cheryl: thank you very much. i just want to point to our viewers on what is happening. we told you this morning that it could be a volatile day depending on what washington does a does not do. flat. forty-five minutes ago when the show began. all of this on more headlines coming out of washington looking like there could be a deal in place. we will hear from president obama and about 50 minutes. well, the irs is saying that it intends to issue guidance by the end of the day on appropriate tax withholdings for the new year. in the meantime, businesses at a standstill waiting until the fiscal cliff of washington. standing by right now in illinois with more.

>> reporter: i am with a room of people who are on pins and needles as we speak. if you think you're sitting at home worried about what is happening, these people in this room are very worried about it. the president and ceo of a short payroll process payrolls for about 40,000 small businesses all across the country. people right now are freaking out would be a strong term, but somewhere in there. >> certainly concerned about what the taxes will be like in the future and for small business owners what it means to the business. >> reporter: to process these checks for about 280,000 paychecks to pay. you worry for whatever happens here? if we get the president out here in 45 minutes and week have a deal, how quickly can you react? >> we will react as quickly as we can. we have to wait for the irs to release the official word in terms of withholding taxes and what might change. >> reporter: by the end of the day will give you guidance.

>> we will work as quickly as we can to get that in place, and it depends on the degrees of the changes. i'm hopeful that we can do it. we have a good team and will focus. >> you have people working on new year's eve, folks are working. the phone calls are coming in from all over the country with people wondering what you will do if you don't give guidance. >> we will continue to go with the current guidance which means that the payroll tax holiday, that extra 2% that people had been able to take out of the paycheck will come back and there will be another 2 percent of the paycheck for social security which will continue going forward and we will stay with the 2012 withholding as long as the irs gives a that fence. cheryl: a huge hit for people regardless, particularly in the lower income levels. these are people there will be paying more taxes, something we have not done a long time in this country cannot pay more taxes. it's coming. on the screens your paycheck is in process.

$400 to a lower end, american is a lot of money. thank you very much for that live report. and it's time for your west coast minute. investigation underway to determine exactly what caused sunday's deadly bus crashed. nine people died, 20 more injured when a chartered bus on its way back to vancouver from los vegas a year off an icy road and fell down a steep amendment. at least 85 feet before it landed at the bottom of the fill up -- hill. washington state governor prepping a new transportation package which could be one of the biggest in the state's history. telling the ap basic maintenance and infrastructure work is desperately needed in that state. no word yet. and workers are busy getting ready for tomorrow's 120th annual tournament of roses parade in pasadena california. about a million spectators expected. it might be a little chilly.

temperatures expected to be in the 50's, possibly lower. judging begins about tenants from now. grand marshal jane goodall known for her work with chimpanzees. and that is your west coast minute. well, if you are celebrating the arrival of 2013 tonight, finding a cab ride home after the party is going to cost you some serious going. as we go to break listed a lookism of today's winners and the nasdaq. apple, netflix, fears.

cheryl: all right. well, how much would you pay to get a ride home on new year's eve after a night of partying? $50, 75, how about 100? it looks like going home tonight will prove uber expensive. >> reporter: $100 minimum. a minimum to step into the car if you're able to get a car.

this is the on demand car service. and app that tracks the car for you precontracted and gps. you know exactly where you will pay up front. the company for warning all of us, if you want to use it tonight there will be plenty of cars available, but it is pointed cost you a pretty penny. the company said in an e-mail to users in new york and chicago, you must have been the mill over the weekend. new year -- new year's eve pricing is not for the faint of heart. the average surcharge multiple will be times to. during extreme spikes it could cost you $100 minimum before time and mileage charges, so it will cost you a lot if you're able to get one. the most expensive time to book a car will be between the hours of 1215-2:45 a.m. the best time, so your gigi for tonight, the least expensive before 7:00 p.m., 10-12, and after 3:00 a.m., which i know when you'll be coming home.

cheryl: or could just go to bed at ten which is definitely the plan. i do want you to stick around because of what your take on this night story. so if you're looking to continue the new year's eve party because i know most of you will go out, one london paper is pointing the way for you. the daily telegraph has compiled a list of the world's busiest destinations. guess what number one is obviously. cheryl: mexico. cheryl: vegas and miami, germany was also up there along with amsterdam and prague. any surprise? >> where was this list and college? my target list. cheryl: burn rate target list. thank you very much. happy new year. a lot more happening and markets now. you have the midnight deadline fast approaching. eleven hours to go.

it will to avoid a fiscal cliff. expect the president to speak life. up-to-the-minute coverage from washington of playing out in our markets. coming up. don't move.